Financial pressure on Gen Z and their parents
It’s tough to talk about money.
That may be the reason that so many Gen Z’s are relying on social media for financial guidance.
A Wells Fargo study released earlier this week reveals that Gen Z (which includes teenagers, college students and recent graduates ages 14-29) are relying on social media for financial information.
The study, released just as we begin recognition of April as National Financial Literacy Month, reveals at the same time, they are turning to social media for information, GenZ is turning to parents for financial support. And that support is impacting their parents’ financial stability.
According to the study, “two‑thirds (64%) of parents with Gen Z children ages 18 to 28 say their children rely on them financially, whether for money, housing, or other support. More than half of those parents (56%) say that support is straining their own finances.”
A similar situation occurred in the PLUS loan program as some parents overborrowed, putting their own financial futures at risk. In some of those cases, parents may have found it easier to take out a loan than to tell their child to look at a less expensive option.
Emily Irwin, head of Private Wealth Planning at Wells Fargo, said, “Open communication, clear expectations, and shared planning can help families navigate this stage together.”
While there are some good resources on social media, it’s important for students to have these conversations with family – even if it won’t be easy.
